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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Inheritance question

44 replies

Zooeyzo · 07/10/2023 12:32

If an unmarried couple are living together but one person owns the mortgaged house what happens if that person suddenly dies?
Will it pass on to the kids even though they are children under 18?
Thanks if anybody can help with this.

OP posts:
DustyLee123 · 07/10/2023 12:34

Has the potentially dead person made a will ?

INTERNETEXPL0RER · 07/10/2023 12:35

The law is different in different countries so it depends where you live .

Does the owner of the house have a will and if so what does it say?

sparklefresh · 07/10/2023 12:35

If they aren't married and the house isn't in joint names then the surviving partner has no entitlement and the kids inherit. The property will be held on trust and will be theirs when they reach 18.

Zooeyzo · 07/10/2023 12:36

In UK law.

OP posts:
Glorifried · 07/10/2023 12:36

If it's you and your partner either get married or get them to make a will ASAP.

sparklefresh · 07/10/2023 12:36

sparklefresh · 07/10/2023 12:35

If they aren't married and the house isn't in joint names then the surviving partner has no entitlement and the kids inherit. The property will be held on trust and will be theirs when they reach 18.

Sorry, should have specified that this applies in Wales and England

sparklefresh · 07/10/2023 12:36

Zooeyzo · 07/10/2023 12:36

In UK law.

There's no UK law - Scotland is different from England and Wales

OhhhhhhhhBiscuits · 07/10/2023 12:36

Zooeyzo · 07/10/2023 12:36

In UK law.

There is no such thing as UK law. It is country specific.

AllTheChaos · 07/10/2023 12:37

Zooeyzo · 07/10/2023 12:36

In UK law.

Which country in the UK though? There’s different laws in eg Wales to Scotland.

Zooeyzo · 07/10/2023 12:37

Sorry England

OP posts:
111111111a · 07/10/2023 12:39

Just write a will. So much easier!

Soontobe60 · 07/10/2023 12:41

In England, if you do not have a will, your estate is passed down according to the laws of intestacy. If your name is not on the house, it will pass down to your(the deceased) children.
easy solution, make a will

Zooeyzo · 07/10/2023 12:52

Thanks everyone.

OP posts:
honeylulu · 07/10/2023 13:13

The non-owning partner needs to either go on the deeds, or marry/civil partner the owner. If neither of those things happen the house will pass to the named beneficiary in the will who could be the partner. If no will then the house passes via intestacy law to the nearest blood relative(s). If there are children it will be them. The unmarried partner is entitled to nothing in that scenario.

Zooeyzo · 07/10/2023 14:02

Thank you all. I had a sudden panic this morning about this.

OP posts:
Zooeyzo · 07/10/2023 14:08

@honeylulu but they can live in the house to look after the kids right?

OP posts:
Lovingitallnow · 07/10/2023 14:11

@Zooeyzo do they have PR? are they the kids guardian? Or named as the kids guardian in the will?

Zooeyzo · 07/10/2023 14:13

Yes parental rights.

OP posts:
Superscientist · 07/10/2023 14:16

It depends on your mortgage and other documentation. We have a joint mortgage and a will leaving the house to the other person. If one of us dies we have the right through our mortgage company to apply the same mortgage as a single application. We also both have life insurance policies which more than cover the amount of the mortgages for for us we would have cash to pay off the mortgage and own the property outright

Artura · 07/10/2023 14:20

You need to speak to a family solicitor and may need to get a "declaration of trust" as well as a will. My partner and I got one when we bought our house. Like others have said, the person not named on the deeds has very few rights to live there if the owner dies. However if you have done a declaration of trust you can specify bills covered etc and start to build up a share in that property. Definitely get some legal advice to make sure you're both covered.

Lizzt2007 · 07/10/2023 14:36

It will depend if the mortgage holder has life insurance to pay off the mortgage outstanding. If not the house would have to be sold as the mortgage company would need their 'share' of the property back.the children would then inherit an equal share of any equity in the property.

Soontobe60 · 07/10/2023 14:39

That’s a point - does your DP have life insurance that will cover the mortgage? If not, then the house would indeed have to be sold to pay off the mortgage unless you were in a position to buy the house yourself.

honeylulu · 07/10/2023 14:43

Zooeyzo · 07/10/2023 14:08

@honeylulu but they can live in the house to look after the kids right?

It's hard to say exactly as it depends on what the owning partner may have specified in a will or trust but generally:

The house would pass to the children.

The children would own the "benefit" but can't be registered as the legal owners until 18, so the house would need to be held in trust for them by a trustee who would be named the legal owner.

I think the fact of the trust would need to be registered as a notice or caution on the Land Register to stop the trustee disposing of the property without accounting for it to the children.

Who would the trustee be? Quite possibly the unmarried partner/children parent but depends on whether the deceased has specified someone else. If no trust already set up or specified the executor odlf the will/administrator of the estate will have to set up the terms of the trust and appoint trustees as he/ she sees fit.

Would the partner be able to remain living in the property with the children until they are both 18? Quite possibly and particularly likely if appointed trustee but the trust would need to specify how the mortgage will be paid and cost of repairing/maintaining/insuring the house is funded as the children have no income. Possibly this could be a deemed responsibility of the partner/trustee in lieu of paying rent to the children. (I'm speculating here to give you a rough idea of how it might work.) If the costs can't be met in this way then the house might need to be sold and proceeds placed in trust for the children and the surviving parent would need to make other arrangements for housing the children and themself. There will be limits on how much the children's money can be used towards that purpose.

If the house is not sold - Once both children are 18 the trust will be discharged and they will be the registered legal owners of the house and responsible for the upkeep and financing. In theory they could throw out the surviving parent but in reality that is unlikely if relations are good. But the surviving parent would have no financial interest in the property.

PosterBoy · 07/10/2023 14:43

They can't always just stay in the house to look after the kids, no.